There are major disadvantages to the cut system. For one, this system increases the cost to the patient. It also promotes malpractice, because family physicians often pressurise specialists to do surgery in order to maximise their revenue, which means that procedures are done, which are not always in the patient's best interests. Because this practice is hidden, it's never discussed openly, and this creates a lot of resentment amongst patients.
The fact that doctors indulge in giving kickbacks is an open secret - and hiding this reality creates a lot of suspicion in the patient's mind. “This is one of the major reasons patients do not trust their doctors, and why the reputation of entire medical profession has taken such a beating in recent years,” says Dr. Malpani.